North Dakota Relinquishment Provision - All offset Wells

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-716
• Format: Word; Rich Text

Description

This clause addresses the responsibilites in the event any Party elects not to participate in the drilling of a well and provides for the relinquishment of interest and assignments by that party. The North Dakota Relinquishment Provision — All Offset Wells refers to a regulatory provision in the state of North Dakota that governs the relinquishment of oil and gas leases for wells located in proximity to other active wells. This provision ensures responsible development and efficient use of natural resources by preventing excessive proliferation of wells in a given area. Under this provision, if an operator holds multiple oil and gas leases within a specific geographic area, they must relinquish a certain percentage of the acreage associated with those leases if offset wells are drilled nearby. The purpose of this provision is to prevent over-drilling in a concentrated area and to promote the orderly development of oil and gas resources. Variations of the North Dakota Relinquishment Provision — All Offset Wells may include: 1. Distance-based relinquishment: This type of relinquishment provision requires operators to relinquish a certain percentage of their acreage if an offset well is drilled within a specific distance from their lease boundaries. 2. Density-based relinquishment: In this case, the relinquishment requirement is triggered if the density of wells within a designated area exceeds a predefined threshold. Once the threshold is met, the operator must relinquish a portion of their lease acreage to maintain a balanced well density. 3. Proportional-relinquishment: This type of relinquishment provision requires the operator to relinquish a percentage of their lease acreage proportionate to the number of offset wells drilled nearby. For example, if three offset wells are drilled, the operator may need to relinquish 30% of their acreage. The North Dakota Relinquishment Provision — All Offset Wells is designed to promote responsible and efficient oil and gas development while avoiding congested well locations. By ensuring a balanced distribution of wells, the provision protects the environment, minimizes surface disturbance, and maximizes the economic benefit for the state and operators. Keywords: North Dakota, relinquishment provision, offset wells, oil and gas leases, responsible development, natural resources, prevent over-drilling, acreage, orderly development, distance-based, density-based, proportional-relinquishment, well density, oil and gas development, surface disturbance, economic benefit.

The North Dakota Relinquishment Provision — All Offset Wells refers to a regulatory provision in the state of North Dakota that governs the relinquishment of oil and gas leases for wells located in proximity to other active wells. This provision ensures responsible development and efficient use of natural resources by preventing excessive proliferation of wells in a given area. Under this provision, if an operator holds multiple oil and gas leases within a specific geographic area, they must relinquish a certain percentage of the acreage associated with those leases if offset wells are drilled nearby. The purpose of this provision is to prevent over-drilling in a concentrated area and to promote the orderly development of oil and gas resources. Variations of the North Dakota Relinquishment Provision — All Offset Wells may include: 1. Distance-based relinquishment: This type of relinquishment provision requires operators to relinquish a certain percentage of their acreage if an offset well is drilled within a specific distance from their lease boundaries. 2. Density-based relinquishment: In this case, the relinquishment requirement is triggered if the density of wells within a designated area exceeds a predefined threshold. Once the threshold is met, the operator must relinquish a portion of their lease acreage to maintain a balanced well density. 3. Proportional-relinquishment: This type of relinquishment provision requires the operator to relinquish a percentage of their lease acreage proportionate to the number of offset wells drilled nearby. For example, if three offset wells are drilled, the operator may need to relinquish 30% of their acreage. The North Dakota Relinquishment Provision — All Offset Wells is designed to promote responsible and efficient oil and gas development while avoiding congested well locations. By ensuring a balanced distribution of wells, the provision protects the environment, minimizes surface disturbance, and maximizes the economic benefit for the state and operators. Keywords: North Dakota, relinquishment provision, offset wells, oil and gas leases, responsible development, natural resources, prevent over-drilling, acreage, orderly development, distance-based, density-based, proportional-relinquishment, well density, oil and gas development, surface disturbance, economic benefit.